Buying bitcoin every month without worrying about the price is called the “DCA” strategy. What are the results over the last few years?
Bitcoin vs Gold vs Microsoft vs S&P500
Most people who try to beat the market end up losing money. This is a dangerous game that should not be played. As Michael Saylor says:
“Over the course of a year, 85% of the performance of the S&P500 index occurs in a single day. And 100% in just 36 hours. […] Trading is a sign of intellectual inferiority. »
Conversely, there is an investment strategy that never disappoints: be patient. This is the objective of the DCA (Dollar Cost Averaging) which means investing at regular intervals.
Here is the performance obtained by investing the same amount in Bitcoin monthly for several years:
-1 year: 39%
-2 years: 56%
-3 years: 38%
-4 years: 101%
-5 years: 186%
In other words, if you patiently invested the same amount every month for five years, as a good father, you have almost tripled your savings. And this, without wasting a single minute in front of your screen.
Obviously, holding on during bitcoin’s 70% declines requires iron-clad conviction. This requires hours of research and a lot of culture which remains more stimulating than TeChNique analysis and wet finger school.
Here is a free site to calculate the results of your DCA: aiolux.com
Much lower results for gold, S&P 500 and Microsoft
Gold :
-1 year: 3%
-2 years: 8%
-3 years: 9%
-4 years: 10%
-5 years: 17%
S&P 500 (the US stock exchange comprising the 500 largest American companies):
-1 year: 11%
-2 years: 19%
-3 years: 16%
-4 years: 23%
-5 years: 34%
Microsoft (the most valuable company in the world):
-1 year: 22%
-2 years: 43%
-3 years: 41%
-4 years: 54%
-5 years: 90%
Bitcoin is crushing all the competition. Knowing that this year promises to be very prolific with probably a new high, potentially beyond $100,000.
For Michael Saylor, we should expect an annualized appreciation of between 20% and 40% for the coming decade. We reported his statements in a previous article:
“In the long term, the money supply increases by 7% per year. The S&P index will surely follow the evolution of the money supply. Bitcoin will appreciate 20-40% per year with volatility until we move to a more mature state, within a decade. But in 100 years, bitcoin will continue to appreciate by more than 7% per year. The reason being that it is not as risky as a multinational company.
Then just look at total global wealth. If it’s $900 trillion, there’s no reason why bitcoin shouldn’t make up 10-20% of that. Which brings us to a figure of $10 million per bitcoin. »
Bitcoin is only $50,000. Hodl!
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